Paytm Aims for a Valuation of up to $ 20 Billion in India’s Largest IPO, Retail News, ET Retail

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New Delhi: One97 Communications, operating under the Paytm brand, will launch India’s largest initial public offering (IPO) on November 8th.

The shares of the Paytm IPO are offered in a price range of 2,080-2,150 rupees apiece, equating to a valuation of around 1.48 million rupees (approximately $ 20 billion). IPO in 2010, at which the state-owned company 15,200 Billed billion rupees.

In a pre-IPO conference Thursday, Vijay Shekhar Sharma, Managing Director and CEO of One97 Communications said he had received personal messages from investors looking to invest in the country for the first time, claiming that “this is the age of India “.

The initial public offering – which will close for subscription on November 10th – includes the issue of new shares valued at Rs 8,300 billion and an offer to sell from existing shareholders for Rs 10,000 billion. “The price range of Rs 2,080 to Rs 2,150 per share implies an enterprise value of $ 19.3 billion to $ 19.9 billion,” said Sudarshan Ramakrishna, MD of Goldman Sachs India Securities, during the IPO presentation. At current exchange rates, the enterprise value is in the range of Rs 1.44 lakh crore to Rs 1.48 lakh crore.

The company skipped a pre-IPO financing round to expedite the start of its first stock sale.

“If we can say that 2010-20 was for Asia in general, China and Japan and other countries, then 2020-30 is 100% for India. This is the age of India, ”said Sharma. “Whether you are a private company, a young startup or a potentially listed or listed company. This is the time when the world gives you money. “

Sharma will sell shares valued at up to Rs 402.65 billion while Antfin (Netherlands) Holdings will sell shares valued at Rs 4,704.43 billion as part of the sale offer. In addition, Alibaba.com Singapore E-Commerce shares worth up to Rs 784.82 crore, Elevation Capital V FII Holdings (Rs 75.02 crore), Elevation Capital V Ltd (Rs 64.01 crore), Saif III Mauritius ( Rs 1,327.65 crore), Saif. sell Partners (Rs 563.63 billion), SVF Partners (Rs 1,689.03 billion) and International Holdings (Rs 301.77 billion), according to the offer document.

“Since the DRHP (Draft Red Hering Prospectus) was submitted, there has been tremendous interest from both Indian and global blue chip investors. We have always had a very high quality stock base from which we have benefited,” said Paytm President and Group CFO Madhur said Deora.

Paytm’s operating revenue increased 62% year over year to Rs 890.8 billion in the first quarter of 2021-22. In FY21, the company reported a gross merchandise value of Rs 4 lakh crore.

“We indicated GMV on the document as a number paid by the consumer, which means that there is a trade going on on our platform,” Sharma said. “We now have a premium profit of Rs 363 crore. It is important to note that payment is a flywheel. ”Monetization lies in payments and financial services. That is our business model. “

“Paytm as a brand is valued at Rs 47,000 billion,” he added.

In the first quarter of FY22, the company’s payment and financial services revenues alone were Rs.689.4 billion, accounting for 77% of total sales. The company suffered a loss of Rs.2.9 billion for the quarter ended June 2021.

In terms of growth potential, Sharma said there are around 40-50 crore smartphone users that are projected to double to around 90 crore over the next five years. This will increase the mobile payments segment from the current 46 lakh crore to Rs 230 lakh crore, he added.

According to research company Redseer, Paytm has a market share of around 40% of transaction volume for mobile payments and a market share of 65-70% for wallet payment transactions in India (as of FY21).

According to the offer document, demonetization also played a role in 2016 in getting merchants to accept payments digitally and led to growth in products such as QR and wallets. Digital payments are expected to more than double from $ 20 trillion in FY21 to $ 40-50 trillion in FY26 due to a variety of factors including government initiatives and reforms, technology improvements, increased reach and awareness.


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